1
Understanding Your Vision
Your retirement goals and lifestyle preferences are the foundation of your income plan. We begin with an in-depth discussion about your family, travel, leisure activities, home, charitable intentions, and any other priorities. By gaining a clear picture of how you envision your retirement years, we can design a strategy that aligns with your ambitions.
2
Analyzing Your Facts and Projections
Once your goals are defined, we carefully model your financial picture. This includes:
- Your fixed expenses, discretionary spending, and larger occasional purchases (a new car, HVAC replacement, a new roof, or a vacation home)
- Projecting these needs into the future while accounting for inflation and rising costs.
- Evaluating your guaranteed income sources, such as Social Security and pensions, then comparing them with your projected income needs.
From here, we examine the most effective strategies for generating income from your investment accounts in a tax-efficient manner, including:
- Which accounts to draw from and when
- Roth IRA conversion opportunities
- Optimal timing to begin Social Security benefits
- Medicare enrollment decisions and strategies to help minimize Medicare premiums (including the Income Related Monthly Adjustment)
- In-depth evaluation of portfolio risk, including market, inflation, and political risks.
We run multiple planning scenarios to determine the most financially efficient and sustainable combination of strategies for your family.
3
Clear, Actionable Recommendations
Your personalized retirement income plan will include tailored recommendations, such as:
- Investment strategy designed specifically for your risk profile and long-term goals
- Tax-efficient retirement income distribution strategy
- Social Security and Medicare guidance
- Estate planning coordination (wills, trusts, charitable giving, legacy planning, etc.)*
- Long-term care planning strategies, if appropriate
- Analysis of your liability coverage (auto, homeowner’s, umbrella, etc.)
*LPL Financial Representatives offer access to Trust Services through The Private Trust Company N.A., an affiliate of LPL Financial.
4
Ongoing Updates and Monitoring
Retirement is not static, and neither is your plan. Through our ongoing review process, we continuously monitor your income strategy, portfolio, and evolving needs. As markets shift, tax laws change, and your lifestyle goals evolve, we’ll be updating your plan so you remain on track with confidence.
This client-first process ensures your retirement income plan is about more than just managing money: it’s about refining your wealth to support your goals, your lifestyle, and your long-term future.
Questions Our Clients Have Asked:
How much retirement income do I need to maintain my current lifestyle?
Calculating retirement income needs starts with a clear assessment of your regular living costs, discretionary spending, and future goals. Personalized planning helps project expenses and determine the right income strategy for lasting financial confidence.
How does inflation affect retirement income, and what can I do to prepare?
Inflation is one of the most important long-term factors to consider in any retirement income plan. While we can’t control inflation, we can design flexible strategies that account for rising costs over time. This helps your income stay aligned with your evolving lifestyle and spending needs.
How do Medicare premiums and enrollment decisions affect my retirement income?
Premiums and surcharges may be larger for those with a high retirement income. Timely Medicare enrollment and tailored income management, including Roth conversions and strategic distribution strategies can help minimize premium hikes while ensuring adequate healthcare coverage.*
*Traditional IRA account owners have considerations to make before performing a Roth IRA conversion. These primarily include income tax consequences on the converted amount in the year of conversion, withdrawal limitations from a Roth IRA, and income limitations for future contributions to a Roth IRA. In addition, if you are required to take a required minimum distribution (RMD) in the year you convert, you must do so before converting to a Roth IRA.
How can I cover unexpected expenses, such as healthcare or home repairs, without jeopardizing my retirement?
Affluent retirees often benefit from larger emergency and strategic reserve funds, comprehensive insurance coverage, and plans that anticipate large outlays. This is an important component of your retirement income planning.
How do required minimum distributions (RMDs) impact retirees?
RMDs for high-net-worth clients can trigger substantial taxable income. Proactive planning with charitable strategies, Roth conversions, and coordinated withdrawal strategies may minimize tax exposure and preserve long-term wealth for you and your family.
How can I minimize taxes on my retirement income?
High net worth retirees may reduce taxes with strategies such as coordinated withdrawals, Roth conversions, charitable gifting, and timing larger taxable distributions to lower bracket years. Integrated planning including investment, income, and estate coordination helps safeguard wealth and limit unnecessary tax payments.
Should I convert my traditional IRA to a Roth IRA?
Roth conversions can offer powerful long-term tax advantages by allowing future growth and withdrawals to be tax-free. However, the decision should factor in current and future tax brackets, legacy planning, Medicare surtaxes, and the impact on required minimum distributions (RMDs). That’s where professional guidance comes in. We model different scenarios to help you make the most of a conversion strategy that fits your situation.
A Roth IRA conversion—sometimes called a backdoor Roth strategy—is a way to contribute to a Roth IRA when income exceeds standard limits. The converted amount is treated as taxable income and may affect your tax bracket. Federal, state, and local taxes may apply. If you’re required to take a minimum distribution in the year of conversion, it must be completed before converting. To qualify for tax-free withdrawals, you must generally be age 59½ and hold the converted funds in the Roth IRA for at least five years. Each conversion has its own five-year period, and early withdrawals may be subject to a 10% penalty unless an exception applies. Income limits still apply for future direct Roth IRA contributions. This material is for informational purposes only and does not constitute tax, legal, or investment advice. Please consult a qualified tax professional regarding your individual circumstances.
